Since the 1966 Coleman report, Equality of Educational Opportunity, another debate has waged as to whether money makes a difference to educational outcomes. It is certainly possible to spend money ineffectively; however, studies that have developed more sophisticated measures of schooling show how money, properly spent, makes a difference. Over the past 30 years, a large body of research has shown that four factors consistently influence student achievement: all else equal, students perform better if they are educated in smaller schools where they are well known (300 to 500 students is optimal), have smaller class sizes (especially at the elementary level), receive a challenging curriculum, and have more highly qualified teachers.
Minority students are much less likely than white children to have any of these resources. In predominantly minority schools, which most students of color attend, schools are large (on average, more than twice as large as predominantly white schools and reaching 3,000 students or more in most cities); on average, class sizes are 15 percent larger overall (80 percent larger for non-special education classes); curriculum offerings and materials are lower in quality; and teachers are much less qualified in terms of levels of education, certification, and training in the fields they teach. And in integrated schools, as UCLA professor Jeannie Oakes described in the 1980s and Harvard professor Gary Orfield's research has recently confirmed, most minority students are segregated in lower-track classes with larger class sizes, less qualified teachers, and lower-quality curriculum.
Research shows that teachers' preparation makes a tremendous difference to children's learning. In an analysis of 900 Texas school districts, Harvard economist Ronald Ferguson found that teachers' expertiseas measured by scores on a licensing examination, master's degrees, and experiencwas the single most important determinant of student achievement, accounting for roughly 40 percent of the measured variance in students' reading and math achievement gains in grades 1-12. After controlling for socioeconomic status, the large disparities in achievement between black and white students were almost entirely due to differences in the qualifications of their teachers. In combination, differences in teacher expertise and class sizes accounted for as much of the measured variance in achievement as did student and family background (figure 1).
Ferguson and Duke economist Helen Ladd repeated this analysis in Alabama and again found sizable influences of teacher qualifications and smaller class sizes on achievement gains in math and reading. They found that more of the difference between the high- and low-scoring districts was explained by teacher qualifications and class sizes than by poverty, race, and parent education.
Meanwhile, a Tennessee study found that elementary school students who are assigned to ineffective teachers for three years in a row score nearly 50 percentile points lower on achievement tests than those assigned to highly effective teachers over the same period. Strikingly, minority students are about half as likely to be assigned to the most effective teachers and twice as likely to be assigned to the least effective.